Refer to Figure 10.7. A movement from point A to point B could be caused by
A) a negative demand shock.
B) a decrease in the term premium investors expect in the future.
C) an increase in the default-risk premium.
D) an increase in the expected rate of inflation.
C
Economics
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The indifference curves in the above figure could represent your indifference curves between
A) Coke and Pepsi, which you consider perfect substitutes. B) eyeglass frames and eyeglass lenses, which you think are perfect complements. C) hot dogs and textbooks, which you think are neither perfect substitutes nor perfect complements. D) none of the above.
Economics
Explain why the competitive output maximizes welfare
What will be an ideal response?
Economics